Thailand's $105 billion budget for 2021 fiscal year delayed for a month

Thailand's $105 billion budget bill for the 2021 fiscal year starting in October is likely to be delayed for a month, a minister said on Monday, as the government tries to revive an economy hammered by the coronavirus pandemic.

But that should not affect spending plans, which can be financed by the current budget until the new one is approved, Deputy Prime Minister Wissanu Krea-ngam told reporters.

"There should not be a problem at all," he said.

The House of Representatives passed the first reading of the bill in July and will tackle the second and third readings from September 16-18.

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The bill will also need Senate approval, expected on September 22, and then the king's endorsement.

The proposed budget projects a 3.1 per cent rise in spending to 3.3 trillion baht ($105.4 billion) for the fiscal year starting on October 1. It projects a deficit of 623 billion baht, up 32.8 per cent from the 2020 fiscal year.

The budget planners have assumed Southeast Asia's second-largest economy will shrink 5.0 per cent-6.0 per cent this year before growing 4.0-5.0 per cent in 2021. The finance ministry predicts a record economic contraction of 8.5 per cent this year.